Grade 11 Business Studies - Influences on Business Environments

Grade 11 Business Studies - Influences on Business Environments

Overview of Business Studies Text

  • The Grade 11 Business Studies 3-in-1 study guide is tailored to walk students through the CAPS curriculum.
  • Key features include:
    • Comprehensive notes per topic
    • Questions per topic
    • Detailed answers to questions
    • Exam papers and memorandums

Table of Contents

  • The guide contains lessons segmented by terms:
    • Term 1 Topics:
    • Topic 1: Influences on business environments
    • Topic 2: Challenges of the business environments
    • Topic 3: Adapting to challenges of the business environments
    • Topic 4: Contemporary socio-economic issues
    • Topic 5: Business sectors
    • Topic 6: Benefits and challenges of a company vs. other forms of ownership
    • Topic 7: Avenues of acquiring a business
    • Term 2 Topics:
    • Topic 1: Creative thinking and problem-solving
    • Topic 2: Stress and crisis management
    • Topic 3: Transformation of a business plan into an action plan
    • Topic 4: Setting up/starting a business
    • Topic 5: Professionalism and ethics
    • Topic 6: Presentation of business information
    • Term 3 Topics:
    • Topic 1: Entrepreneurial qualities and success factors
    • Topic 2: Citizenship roles and responsibilities
    • Topic 3: The marketing function
    • Topic 4: The production function
    • Term 4 Topics:
    • Topic 1: Team dynamics and conflict management
    • Topic 2: Introduction to human resources
    • Practice questions and answers per term

Topic 1: Influences on Business Environments

Components of the Business Environment

Micro Environment
  • Definition: Refers to the business itself; also called the internal environment.
  • Significance: Internal operations directly impact business success.
Components of the Micro Environment
  1. Vision
    • Long-term dream of the business; future aspirations.
    • Describes where the owners see the business going.
  2. Mission
    • Describes the core function of the business.
    • Outlines how to achieve the vision and goals; includes overall philosophy and competitive edge.
  3. Goals
    • Desired long-term outcomes.
    • Outcome statements guide strategic direction, e.g., improving profitability.
  4. Objectives
    • Short-term activities for achieving goals; must be SMART:
      • Specific
      • Measurable
      • Attainable
      • Relevant
      • Timely
  5. Management and Leadership Style
    • Influences goal achievement; can be democratic or autocratic, each with advantages and disadvantages.
  6. Structure of the Business
    • Describes management hierarchy and responsibilities defined in organograms.
  7. Organisational Resources
    • Human Resources: Personnel needed to operate.
    • Physical Resources: Capital goods like machinery and tools.
    • Financial Resources: Available cash and investments for operations.
    • Other Resources: Efficient use of time and other critical resources.
  8. Organisational Culture
    • Defines workplace conduct, customer treatment, and internal relationships.
    • Reflects values and beliefs integrated into business interactions.

Eight Business Functions

  • Key functions essential for business operations:
    1. General Management - Overall strategic direction.
    2. Purchasing (Procurement) - Acquiring goods and services.
    3. Production - Manufacturing goods.
    4. Public Relations - Managing public image.
    5. Marketing - Conducting market research and promotion.
    6. Financing - Financial management and control.
    7. Human Resources - Employee welfare and management.
    8. Administration - Data management and processing.

Market Environment

  • Definition: External environment; less controllable than the micro environment.
  • Components:
    1. Customers
    • Buyers of goods and services; brand loyalty is crucial for sustainability.
    1. Suppliers
    • Provide essential inputs; their pricing impacts business costs.
    1. Competitors
    • Other businesses in the same market; influence pricing and market share.
    1. Regulators
    • Ensure compliance with laws; protect interests, especially employee rights.
    1. Intermediaries and Strategic Allies
    • Connect micro and market environments; examples include retailers and wholesalers.
    1. Trade Unions
    • Protect worker rights; negotiate for better conditions and wages.

Macro Environment

  • Definition: External factors completely beyond business control.
  • Components:
    1. Political Factors
    • Stability and laws affecting business operations.
    1. Economic Factors
    • Influence trading conditions; includes prime interest rate, repo rate, and taxation.
    1. Social Factors
    • Consumer purchasing power shaped by societal issues (e.g., crime, employment).
    1. Legal Factors
    • Current legislation impacts compliance requirements.
    1. Technological Factors
    • Modern production methods important for efficiency.
    1. Environmental Factors
    • Sustainability responsibilities and environmental impacts.

Extent of Control Over Environments

  • Micro Environment: Full control over internal decisions.
  • Market Environment: Some influence; effects from consumer behavior and supplier pricing.
  • Macro Environment: No control; external changes dictate business operations.

Businesses' Involvement in the Macro Environment

  • Political Aspects: Understanding local laws and stability.
  • Economic Aspects: Staying updated on economic conditions and trends.
  • Social Aspects: Addressing demographic challenges and societal trends.
  • Technological: Adopting new technologies for competitive advantage.
  • Legal: Compliance with laws through informed practices.
  • Environmental: Implementing eco-friendly practices to mitigate impact.

Topic 2: Challenges of the Business Environments

Challenges of the Micro Environment

  • Difficult Employees: Diversity in workforce leads to the need for cultural sensitivity training.
  • Unmotivated Employees: Need for regular training and motivation strategies to boost productivity.
  • Lack of Vision and Mission: Importance of clarity in guiding business objectives; risk of outdated strategies.
  • Inadequate Management Skills: Necessity for skilled managers; impacts communication and productivity.
  • Trade Unions: Engage transparently to address worker concerns and prevent strikes.
  • Strikes and Go-Slows: Operations halt due to unfulfilled worker demands affecting productivity.

Environmental Scanning Technique

  • SWOT Analysis: A strategic tool to assess internal Strengths, Weaknesses, and external Opportunities, Threats.
    • Strengths: Attributes contributing to success (e.g., skilled workforce).
    • Weaknesses: Factors hindering success (e.g., high employee turnover).
    • Opportunities: External trends that can benefit the business (e.g., competitor closures).
    • Threats: External challenges (e.g., supplier issues, rising costs).

Challenges of the Market Environment

  • Competition: Need for competitor profiling to enhance market position.
  • Shortage of Supply: Impacts production ability and may lead to increased costs.
  • Changes in Consumer Behavior: Necessitates ongoing market research to adapt to trends.